Ethereum: total in staking exceeded 14 million in Q3 2022

Total Ethereum in staking exceeded 14 million in Q3 2022, although the price of ETH seems to still remain in its red zone.

Total Ethereum in staking exceeded 14 million in Q3 2022

In the last third quarter 2022, total Ethereum in staking reached 14.08 million. 

Total staked Ethereum surpassed 14 million in Q3 2022 pic.twitter.com/LrawVed3N3

— Blockworks (@Blockworks_) October 27, 2022

This is an ever-increasing figure that, compared to 2021, doubles quarter by quarter. And in fact, during Q2 2022, the total ETH in staking was 12.98 million while Q1 2022 was 10.98 million. 

Last year, on the other hand, after the boom in growth from Q1 to Q2 2021 of nearly 2.5 million, the other quarter passes saw a growth of ETH in staking of only 1 million. 

The fact that Ethereum staking is on the rise means that traders like the project, especially after the mid-September Merge that completely made Ethereum a Proof-of-Stake (PoS) Blockchain. 

In this regard, Alan Goldberg, market analyst at BestBrokers, commented:

“Total Ethereum stake currently sits at approximately 14.44 million ($19.5 billion). Total staked ETH in Q3 2022 alone exceeds 1.096 million, which is a sign that traders find it a reliable alternative to the traditional markets.”

Ethereum staking grows, but price remains in red zone

One consequence that many expect from the growth in Ethereum staking is an increase in price, but it still seems to remain in the red zone.

And indeed, at the time of writing ETH is worth $1,500. This is a price touched after the pump that occurred last Tuesday, a day when ETH stood at $1350. 

However, if one were to take a look at the price fluctuations over the various 2022 quarters, as opposed to staking, it certainly appears that Ethereum is still bear market. 

In practice, starting the year at $4,000, Ethereum ended Q1 2022 at a price of $2900, then dropped in Q2 to $1900 and to $1550 in Q3. 

Certainly, the price predictions after the Ethereum Merge, made by Simon Peters, crypto market analyst at eToro, somewhat confirmed that the shift from PoW to PoS would not create major price increases. 

Rather, Peters said that the reasons for Ethereum’s lack of price increase should be sought in the entire financial market, not just crypto. 

The SEC and the Know Your Customer on staking

Recently, the SEC stated that it would impose the Know Your Customer (KYC) practice on Ethereum staking activity. 

This was actually stated by Gary Gensler, Chairman of the SEC, who said that these types of cryptocurrencies that use the PoS system, should be considered for all intents and purposes as securities and should be treated as such from a regulatory perspective. 

In practice, Gensler seems not to be very supportive of the gains from staking Ethereum and all PoS cryptocurrencies, which would be a profit made from the effort. 

In this sense, the SEC Chairman defines such gain as one of the crucial points of the Howey test, the one used by the SEC precisely to determine whether an asset is an investment product and therefore must follow the rules for that category.